Hudson Global Appoints Computershare Trust Company as Exchange Agent Post-Merger

Hudson Global has appointed Computershare Trust Company as the Exchange Agent to manage the distribution of shares and cash payments for fractional shares to Star Equity Holdings stockholders following the merger's approval. The merger was announced on May 21, 2025, and the stock has a Hold rating with a $19.00 price target. Hudson Global's overall stock score reflects declining revenues and negative cash flows, but positive strategic moves and improvements in adjusted net revenue and EBITDA provide optimism.

Star Equity Holdings, Inc. (STRR) reported a robust second quarter (Q2) 2025, with revenue up 76% year-over-year, driven by organic growth and strategic acquisitions. The company's Building Solutions division saw a 51% revenue increase, reaching $20.4 million, with a strong order backlog of $25.7 million. The Energy Services division successfully integrated Alliance Drilling Tools (ADT), generating $3.3 million in revenue despite macroeconomic challenges [1].

The company's gross margin improved significantly to 26% from 16% in the same quarter last year, primarily due to higher revenues and the addition of higher-margin businesses. Star Equity Holdings reported a positive net income from operations of $3.5 million, reversing a net loss from the previous year. Non-GAAP adjusted net income from operations was $6 million or $1.87 per share, compared to an adjusted net loss of $0.9 million or $0.29 per share in the prior-year period [1].

The merger with Hudson Global, announced on May 21, 2025, is expected to generate considerable value for stockholders due to increased scale, further diversification of revenue streams, and the elimination of redundant public company costs. Computershare Trust Company has been appointed as the Exchange Agent to manage the distribution of shares and cash payments for fractional shares to Star Equity Holdings stockholders following the merger's approval [2].

Despite the strong performance, SG&A expenses increased by 20% due to the inclusion of new acquisitions and M&A-related costs. Consolidated cash flow from operations was an outflow of $1.7 million, although improved from the previous year's outflow. The unrestricted cash balance decreased to $1.9 million from $4.0 million at the end of 2024, primarily due to acquisition costs. Holdings in public equity securities decreased to $1.8 million from $3.4 million at the end of 2024 [2].

Management expressed confidence in the Building Solutions outlook for the next few quarters, expecting it to be at least flat with what was achieved in Q2. The Energy Services division is also expected to maintain its performance despite macroeconomic headwinds [1].

Star Equity Holdings faces macroeconomic headwinds, including rig count declines, which could impact future performance in the Energy Services division. However, the company's strategic moves and improvements in adjusted net revenue and EBITDA provide optimism for the future [2].

References:
[1] https://seekingalpha.com/news/4484819-star-equity-signals-strong-building-solutions-momentum-and-targets-value-creation-with-hudson
[2] https://finance.yahoo.com/news/star-equity-holdings-inc-strr-071042105.html